Trump says Mexico, EU to face 30% tariff from Aug 1

Both sets of duties would take effect August 1, Trump said in formal letters posted to his Truth Social platform. The president cited Mexico's role in illicit drugs flowing into the United States and a trade imbalance with the EU as meriting the tariff threat.

Both partners swiftly slammed the new duties, with the EU warning they could disrupt supply chains –– but insisting it would continue talks seeking an agreement with the US –– while Mexico branded them an "unfair deal."

Since returning to the presidency in January, Trump has unleashed sweeping stop-start tariffs on allies and competitors alike, roiling financial markets and raising fears of a global economic downturn.

But his administration is coming under pressure to secure deals with trading partners after promising a flurry of agreements.

So far, US officials have only unveiled two pacts, with Britain and Vietnam, alongside temporarily lower tit-for-tat duties with China.

The fresh duties for Mexico announced by Trump would be higher than the 25 percent levy he imposed on Mexican goods earlier this year, although products entering the United States under the US-Mexico-Canada Agreement (USMCA) are exempted.

"Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough," Trump said in his letter to Mexican President Claudia Sheinbaum.

"Starting August 1, 2025, we will charge Mexico a Tariff of 30% on Mexican products sent into the United States."

The Mexican government said it had been informed of the new threat during talks in the United States on Friday.

"We mentioned at the table that it was an unfair deal and that we did not agree," the Mexican economy and foreign ministries said in a joint statement.

A 30% tariff on EU exports would hurt businesses, consumers and patients on both sides of the Atlantic.

We will continue working towards an agreement by August 1.

At the same time, we are ready to safeguard EU interests on the basis of proportionate countermeasures.

— Ursula von der Leyen (@vonderleyen) July 12, 2025

The EU tariff is also markedly steeper than the 20 per cent levy Trump unveiled in April, as negotiations with the bloc continue.

"Imposing 30 per cent tariffs on EU exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic," European Commission chief Ursula von der Leyen said in a statement, in reply to Trump's letter to her.

"We remain ready to continue working towards an agreement by August 1. At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required," she added.

Precarious moment

The EU, alongside dozens of other economies, had been set to see its US tariff level increase from a baseline of 10 percent on Wednesday, but Trump pushed back the deadline to August 1.

Since the start of the week, Trump has sent out letters to more than 20 countries with updated tariffs for each, including a 35 percent levy for Canada. A US official told AFP Saturday that the USMCA exemption was expected to remain for both Mexico and Canada, although the president has yet to make final decisions.

Brussels said Friday that it was ready to strike a deal with Washington to prevent the return of 20 percent levies.

The EU has prepared retaliatory duties on US goods worth around 21 billion euros after Trump also slapped separate tariffs on steel and aluminum imports earlier this year, and they are suspended until July 14.

European officials have not made any move to extend the suspension but could do it quickly if needed.

"Despite all the movement toward a deal, this threat shows the EU is in the same camp of uncertainty as almost every other country in the world," said Josh Lipsky, chair of international economics at the Atlantic Council.

He told AFP that the path forward now depends on how the EU responds, calling it "one of the most precarious moments of the trade war so far."

Germany urges “pragmatic” solution to US tariff talks

Germany's economy minister on Saturday called for pragmatism in European Union tariff negotiations with the United States.

US President Donald Trump on Saturday warned that Mexico and the EU would be slapped with 30 per cent tariffs starting on August 1, raising the stakes in already tense negotiations with two of the largest US trading partners.

"The EU now must, in the time that remains, negotiate in a pragmatic manner a solution with the United States," Germany's economy minister Katherina Reiche said in a statement.

"A pragmatic outcome to these negotiations must be reached quickly," she said.

Earlier, Germany's main industrial body urged a quick resolution.

"President Trump's announcement is a wake-up call for industry on both sides of the Atlantic," said the Federation of German Industries (BDI) in a statement.

"A trade conflict between two economic areas as closely linked as the EU and the United States harms economic recovery, innovation strength, and ultimately confidence in international cooperation," warned Wolfgang Niedermark, a senior BDI official.

The federation "calls on the German government, the European Commission, and the American administration to now very quickly find solutions and to avoid an escalation."

The US is Germany's largest trading partner.

With possible tariffs looming, German exports to the US fell by 7.7 percent in May to 12.1 billion euros ($14.2 billion), according to government data released last week.

The drop left German exports to the US at their lowest level since March 2022.

Mexico slams Trump threat of 30% tariffs as “unfair deal”

Mexico slammed US President Donald Trump's latest threat of 30 per cent tariffs Saturday as an "unfair deal," according to a government statement.

Mexico was informed of the new duties –– which Trump said would come into effect by August 1 –– during talks in the United States on Friday.

"We mentioned at the table that it was an unfair deal and that we did not agree," the Mexican economy and foreign ministries said in a joint statement.

Mexico is already in negotiations seeking an alternative to tariffs that would protect businesses and jobs on both sides of the border, the ministries added, saying they hope to avoid the duties.

Mexico is one of the countries most vulnerable to the Republican leader's tariffs, with 80 per cent of its exports destined for the United States, its largest trading partner.

Since returning to the White House in January, Trump has reproached Mexico for not doing what he says is enough to prevent illegal migration and drug trafficking across the border, and has wielded tariffs as retaliation.

French president voices “strong disapproval” of 30% US tariffs for EU, calls for “countermeasures”

French President Emmanuel Macron on Saturday voiced "strong disapproval" of 30 percent US tariffs for EU and called for accelerating the preparation of "credible countermeasures."

"Along with the President of the European Commission, France shares the same very strong disapproval at the announcement of horizontal 30% tariffs on EU exports to the United States from August 1st," Macron wrote on X.

He reiterated the need for the Commission to "assert" the bloc's "determination" to uphold European interests "resolutely."

"In particular, this implies speeding up the preparation of credible countermeasures, by mobilising all the instruments at its disposal, including anti-coercion, if no agreement is reached by August 1st," Macron noted.

He further expressed France's "full support" to the negotiations that "will intensify" to reach a mutually acceptable agreement by Aug. 1, "reflecting the respect that trading partners like the European Union and the United States owe each other, with their shared interests and integrated value chains."

Along with the President of the European Commission, France shares the same very strong disapproval at the announcement of horizontal 30% tariffs on EU exports to the United States from August 1st.

This announcement comes after weeks of intense engagement by the Commission in…

— Emmanuel Macron (@EmmanuelMacron) July 12, 2025

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Source: TRT